Small Cap Feast

Small Cap Feast – 08 March 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 908

Total number of AIM Companies trading: 837*
* As at 27 February 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 89*

Total number of NEX Growth Market Companies trading: 87*
* As at 27 February 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 161*

Total number of Standard List Companies trading: 142*
* As at 27 February 2019

Dish of the Day:

Vietnam Holdings (VNH.L)  has moved from AIM to the Main Market (Premium)

Off the Menu:

Crusader Resources CAS.L  has left AIM. Expects to restart trading on ASX.

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

DWF, a global legal business,  expects to raise primary gross proceeds of approximately £75m. Due March

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 20 March

AIM

Techniplas –global  producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient.  FYDec17 rev $515m.

Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.

Breakfast Buffet

Andalas Energy (ADL.L) 0.2p £2.64m

Has been advised that the e operator of Southern North Sea Licence P2112 (has relinquished the Licence. Also been informed by the Operator (Corallian Energy Limited) that the sidetrack well 98/11a-6Z has encountered the top of the Sherwood Sandstone reservoir below the level of the 98/11-3 oil water contact and did not penetrate the predicted fault bounding the target Colter Prospect.

“The Colter appraisal programme has delivered a larger than expected Colter South prospect and significantly increased our understanding of the broader Colter prospect.  The results of the sidetrack does, however, indicate that overall the Colter prospect is smaller than initially expected, but the results from the drilling of the sidetrack did deliver encouragement for our adjacent onshore prospects from the good shows encountered in the Middle Jurassic. 

The joint venture will now integrate the results of the programme into its evaluation of the way forward to commercialisation”.

Other companies with an interest in Colter include Reabold (RBD), United Oil & Gas (UOG) and Baron Oil.

Northamber (NAR.L) 28p £8.06m

“Having reported a strong and encouraging performance for the full year to June 2018, it is disappointing to report that the commercial sector upon which our B2B offering is focussed has been negatively impacted by the widespread Brexit malaise hanging over us all.”

In the first half we have seen revenues fall from £31.7m to £24.2m for the comparative period last year, although this has reflected our planned refocusing of our core business case and it is worth noting that revenues in the second half of the year ended 30 June 2018 were £26.5m.  What I am pleased to report is that the trend of improvement in the Gross Profit margin has continued, increasing from 7.6% to 8.4% in the first half, alongside lower overheads including distribution costs.”

Free Cash was £2.9m at 31 Dec 2018 compared with £2.2m at 31 Dec 2017. Net Assets at 61.9p per share are considerably in excess of the average price of the ordinary shares throughout the period.

Very cautious outlook. However “our continued focus on the new higher margin value categories continues to be an area we are confident and excited about, and where we see our future opportunities.”

Northamber is the longest established trade-only distributor of IT equipment in the UK.

 

Strix Group (KETL.L) 156p £297.16m

The  global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, confirms that, following approval by HaloSource Corporation shareholders at the general meeting held on 26 Feb 2019, the acquisition of specified assets from HaloSource has now completed.  Strix has entered into an asset purchase agreement with HaloSource, pursuant to which it will acquire specified assets relating to HaloSource’s HaloPure division and its Astrea product, for total consideration of $1.33m.

The Board of Strix believe that the Acquisition represents an opportunity to acquire extensively developed technology, which is complementary to its Aqua Optima division, at an attractive price, as well as gaining access to skilled research and development resource in the USA. Strix will continue the process of commercialising the technology and products that it has acquired, leveraging its experience of operating in the water filtration sector and bringing to market new consumer products.

 

Goals Soccer Centres (GOAL .L) 40.5p £42.1m

The “leading operator of outdoor small-sided soccer centres with 50 sites including four in California, North America, has over the last 12 months made significant changes to the leadership and operational management of the business, at both an Executive and non-Executive level, as well as appointing new Company Auditors. As part of the review of the results for the financial year ending 31 Dec 2018, the Board, together with the Auditors, are working to resolve certain accounting errors, and are reviewing some accounting practices and policies. It is likely that the Board will take a more prudent approach both for 2018 full year results and going forward.  

As a result, the Board now expects the 2018 full year results will be materially below expectations and that the reporting date (previously 12 March 2019) will be delayed.

Whilst the majority of these accounting adjustments are of a non-cash nature, this does nevertheless mean that the Company will have exceeded one of its banking covenants at 31 Dec 2018. We are in discussions with the bank with a view to agreeing re-negotiated facilities. The Board would also like to confirm that trading in the first two months of the year has been strong with an increase in like-for-like sales, in both the UK and US, over the comparable period in 2018.”

 

Brave Bison Group (BBSN.L) 3.25p £18.77m

“The social video company, announced that The PGA TOUR has renewed its strategic relationship with the Company. Brave Bison has worked with the TOUR to enhance its presence across its portfolio of YouTube channels since 2017. 

Brave Bison will continue to work in collaboration with the TOUR’s content teams to drive advertising revenue, increase organic views, and generate subscriber growth. Its services will include YouTube channel management, digital rights management, and content strategy development.

The deal will now expand to the TOUR Facebook page where Brave Bison will help protect its intellectual property across Facebook via rights management as well as advising on Facebook video strategy.”

 

Thor Mining (THR.L) 1p £7.35m

Selection of Q&A from the recently published shareholder Q&A document.

What impact does the establishment and listing of EnviroCopper Limited have for the cash       and funding requirements of Thor Mining?

The original cash commitment to be made by Thor for the Kapunda project was A$1.8m over three years of which the Company has expended A$0.45m to date.

What will the asset base of EnviroCopper look like, assuming this goes forward?

Kapunda with 119,000 tonnes of contained copper metal within an existing ISR amenable JORC compliant inferred resource

Moonta with sufficient potential scale to become a medium size long term copper producer and an ISR amenable exploration target of between 428,000 and 728,000 tonnes of contained copper.

 

Seeing Machines (SEE.L) 5p £114.39m

Toll Helicopters and Seeing Machines have joined forces to launch a unique eye tracking technology trial this month as part of the Toll AW-139 Full Flight Simulator at the ACE Training Centre in Sydney.

The trial is based on Seeing Machines’ Crew Training System prototype which incorporates modern eye tracking technology. The system supports aviation training instructors, pilots and crewmen with intelligent, evidence based data to provide detailed insights into pilot scanning techniques and situational awareness.

For instructors, the ability to see in real time where a student’s eyes are tracking is remarkable. You can observe, analyse and interpret the pilot’s situational awareness. In addition, having the eye tracking auto-recorded for replay during training debriefs offers pilots a comprehensive review tool and the ability to self-remediate areas for improvement.”

 

ADES (ADES.L) 13.88p £463.21m

The “oil & gas drilling and production services provider in the Middle East and North Africa (MENA), announced that it has entered, through its subsidiary ADES S.A.E., into a short-term exploration contract with Dana Gas for deepwater drilling services in the Egyptian Mediterranean basin. The service will be provided using Vantage’s Tungsten Explorer, comprising one firm well and the contract is estimated to last 77 days, with an extension option to a further three wells.”

“Amid significant gas discoveries and prospective drilling programmes in the region, this contract presents several attractive commercial opportunities which could be realized through an extension over the long-term.

The contract will operate on a profit-sharing basis, enabling ADES to generate additional revenue without incurring the significant capital expenditure normally associated with deepwater drilling.”

 

Oriole Resources (ORR.L) 0.36p £2.53m

Oriole has been diluted to below 10% at the Muratdere copper-gold project in Turkey, following further investment in the Project by its joint-venture partner Lodos Maden Yatırım Sanayii ve Ticaret A.Ş. (‘Lodos’). As per the terms of the joint venture, the Company’s remaining equity interest will shortly be converted to a 1.2% post Turkish tax net smelter returns royalty . “One step closer to realising value from this legacy asset.”

 

Lidco (LID.L) 3.6p £8.67m

The hemodynamic monitoring company, announced that it has had further success in the USA contracting a large public university medical centre in Southern California to its differentiated High Usage Programme (HUP) business model. The customer has signed a five-year agreement for 15 monitors, fully converting from their current hemodynamic monitoring provider.   Since the start of the calendar year the Company has now won three new HUP customers, signing contracts for 38 monitors with an annualised revenue of $0.5m. Since launching the HUP programme in July 2017, the Company now has 129 HUP monitors in the US generating contracted annualised recurring revenues in excess of $1.5m.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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